What is the Target CPA Calculator?
Target CPA (cost per acquisition) is the most you should pay in ads to win one purchase while still keeping the profit you want. Formula: target CPA = AOV × gross margin × orders per customer − target profit. A $75 order with a 45% margin earns $33.75 gross profit; keeping $10 leaves a target CPA of $23.75.
Raise Expected orders per customer above 1 to bid on lifetime value: at 2.5 lifetime orders the same customer is worth $84.38 in gross profit, so you could pay up to $74.38 — as long as you have the cash to wait for repeat orders to pay it back.
How to use the Target CPA Calculator
- Enter Average order value.
- Enter Gross margin (after product, shipping, fees) as a percentage.
- Set Target profit per first order — the profit you want to keep after ad cost.
- Optionally raise Expected orders per customer (lifetime) above 1, then use the target CPA as your tCPA bid.
Why use AnyShift's Target CPA Calculator
Instant resultsNumbers update as you type — no submit button, no page reloads.
Formula shownEvery result shows how it was calculated so you can check the maths.
Editable assumptionsRates, fees and defaults are pre-filled but always adjustable.
Private by designCalculations run in your browser. Nothing is stored or sent.
Popular use cases
- Setting a target CPA bid strategy in Google Ads
- Choosing a cost-per-purchase goal for Meta campaigns
- Deciding how much to pay for new subscribers
- Checking whether an agency’s CPA target is profitable
Target CPA by expected lifetime orders
$75 average order, 45% gross margin, $10 target profit:
| Orders per customer | Lifetime gross profit | Target CPA |
|---|---|---|
| 1 | $33.75 | $23.75 |
| 1.5 | $50.63 | $40.63 |
| 2 | $67.50 | $57.50 |
| 3 | $101.25 | $91.25 |
Frequently asked questions
What is the difference between CPA and CAC?
CPA is cost per conversion inside one ad platform; CAC is total sales and marketing cost per new customer across all channels. Work out CAC with the customer acquisition cost calculator.
Should I use lifetime value for target CPA?
Only if you have reliable repeat-purchase data and enough cash flow to wait for payback. Otherwise keep orders per customer at 1 so each first order pays for itself.
What is break-even CPA?
The gross profit on one order: AOV × gross margin. Paying more than this loses money on the first order; with the defaults it is $33.75.
How do I set a target CPA in Google Ads?
Choose the Maximize conversions bid strategy, set a target cost per action and enter the figure from this calculator in your account currency. Start near your current actual CPA and move towards the target in steps.
Why is my target CPA $0?
Your target profit is larger than the gross profit a customer brings in, so there is no room for advertising and the result is floored at zero. Lower the profit target, raise prices or increase repeat purchases.
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